A Rare Bearish Sign For The Stock Market And Nasdaq

Most of our recent market studies have demonstrated that the stock market’s medium-long term outlook is bullish right now.

Here’s one for the bears. It’s one of the few serious warning signs right now.

As you probably know, the Nasdaq has fallen 1%+ 3 days in a row. This is very rare after the Nasdaq was at all all-time high. Most 3 day crashes in the Nasdaq happened after the Nasdaq had already rolled over. These sharp reversals are very rare.

There is only 1 other historical case in which the Nasdaq fell 1%+ for 3 days in a row after making an all-time high (other than the current case).

March 15, 2000, at the stock market’s top.

Is this study a guaranteed bearish sign for the stock market? No. I wouldn’t rely too much on market studies that are based on a historical sample size of 1

There will never be a market in which all the studies/factors are bullish or all the studies/factors are bearish. What matters is whether the majority of studies/factors are bullish or bearish.

Even though this study sends a warning sign to stock market bulls, the majority of market studies are bullish for the stock market’s medium-long term right now.

Either way, the stock market is exhibiting signs that imply the bull market only has 1 year left.